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Income Tax Appellate Tribunal, “C” BENCH: KOLKATA
This appeal preferred by the revenue is against the order of the Ld. CIT(A)-VIII, Kolkata dated 26.02.2013 for AY 2005-06.
At the outset itself, the Ld. AR drew our attention to the fact that tax effect involved in this appeal of revenue is less than Rs.50 lakhs so it is hit by the CBDT Circular No. 3 of 2018 dated 11.07.2018. Per contra, according to Ld. DR, that monetary limit for filing appeals/withdrawing appeals is not applicable to share capital/premium added u/s. 68 of the Income-tax Act, 1961 by virtue of later CBDT Circular No. 23/2019 dated 06.09.2019 and, therefore, need to be adjudicated on merits. In his rejoinder, the Ld. AR drew our attention to the copy of circular No. 23 of 2019 and contended that there is no such exception clause for share capital addition whereas it is applicable only for bogus Long Term Capital Gain/Short Term Capital Loss that too in the case of penny stocks. For easy reference the CBDT Circular No. 23 of 2019 dated 06.09.2019 is reproduced as under:
Diligent Investment Pvt. Ltd. AY- 2005-06
We note that the CBDT Circular dated 06.09.2019 (supra) prescribes an exception to the earlier circular of CBDT wherein Rs.50 lakhs is prescribed as the monetary limit for filing of appeal before the Tribunal and the CBDT has instructed the department to withdraw the appeal which has been filed in Tribunal which is having tax effect of less than
Diligent Investment Pvt. Ltd. AY- 2005-06 Rs.50 lakhs and by this Circular No. 23 of 2019 an exception has been made in respect of LTCG/STCL in the case of penny stock cases, which is not the case before us. Therefore, taking note that the tax effect involved in this appeal of the revenue is less than Rs.50 lacs, we treat the revenue appeal to fall in the ken of CBDT circular (supra) and make it clear that this case does not fall foul of the exception later brought in by its later circular No. 23 of 2019 and so, we dismiss it as withdrawn.
In the result, the appeal of the revenue is dismissed.
Order is pronounced in the open court on 27th November, 2019.
Sd/- Sd/- (J. Sudhakar Reddy) (Aby. T. Varkey) Accountant Member Judicial Member
Dated : 27th November, 2019 Jd.(Sr.P.S.) Copy of the order forwarded to:
Appellant – ITO, Ward-8(2), Kolkata.
2 Respondent – M/s. Diligent Investment Pvt. Ltd., 32, Chowringhee Road, Kolkata-700 071. 3. CIT(A)-VIII, Kolkata. (sent through e-mail)
4. CIT, Kolkata.
DR, ITAT, Kolkata. (sent through e-mail)